Monitoring

Posted in Services

Monitoring

Abraxas provides loan monitoring services to lenders and borrowers of capital in the commercial, industrial, and real estate sectors ensuring an orderly, timely and accurate flow of funds between lenders and borrowers during the implementation of the agreed performance/ recovery strategy and thereby minimizing the lenders risk exposure.

The prerequisite of a successful monitoring is the preparation of robust financial projections for the troubled businesses or a strong recovery plan which will provide the benchmark against which the borrower's performance will be judged.

As a rule, monitoring follows on from a Business Review assignment where the recovery strategy was clearly set, in which case it involves the monitoring of the debtor's compliance with the agreed recovery strategy.

The main objectives of our assignment are:

  • to ensure that the budget is reasonable, adequate, and realistically allocated to the various hard and soft cost budget categories;
  • to analyze and report on the existence and adequacy of supporting documentation, schedules, cash flows, contracts, bonds, insurances, etc.
  • to communicate with both the lender and the borrower regarding cost overruns (or potential overruns) which may affect the status of the loan agreement;
  • to close the knowledge gap between financier and borrower;
  • to bring in fresh ideas and informed and objective outlook to support the recovery effort;
  • to virtually eliminate the financier risk of over-advancing funds for the business while helping both the borrower and the lender to understand the concerns of the other.